QUEEN’S PARK – Progressive Conservative members of the Standing Committee on Finance and Economic Affairs called today’s review of Premier Dalton McGuinty’s controversial health tax a sham and a complete waste of time.

The committee, which includes PC MPPs Tim Hudak, Toby Barrett and Ted Arnott, was to review the controversial health tax imposed by the McGuinty government in 2004 despite campaign promises to the contrary. However, despite the Committee's review, Premier McGuinty has already said that the so-called health tax is here to stay no matter what the Committee hears from Ontario taxpayers.

“Dalton McGuinty broke a promise when he imposed the so-called health tax in 2004 and he’s now breaking another promise when it comes to an honest review,” Hudak said. “It’s clear Dalton McGuinty has no intention of giving Ontario families and seniors a well deserved break.”

Premier McGuinty broke his signature promise from the 2003 campaign not to raise people’s taxes when he introduced the controversial health tax with his first budget as Premier in May 2004. At that time, he promised to have the Standing Committee on Finance and Economic Affairs review the usefulness of the tax after four years.

Despite unexpected revenues of $5.1 billion dollars last year, McGuinty said he had no intention of getting rid of the health tax, arguing that he needs “every single penny of that premium." (September 6, 2007). In spite of this, the Premier ordered the review to proceed only “because we’re legally obligated to do so” (March 19, 2008).

“The committee hearings were essentially a waste of time and resources,” Arnott said. “By prejudging the outcome, the Premier showed disrespect for the taxpayers and groups who appeared before the Committee, who took the time to present or make written submissions when the fix was already in.”

Evidence that the health tax needed an honest review didn’t just come from opposition MPPs. Anne Marie DeCicco-Best, Mayor of the City of London, informed the committee today that due to vagaries in the Ontario Health Premium legislation, the City is being made to pay $800,000 in health taxes on behalf of some of its unionized employees. The $800,000 cost must then be borne by London homeowners through their property taxes.

“The people of Ontario did not vote for this tax on their income or their property during the 2003 election,” Barrett added. “Liberal runaway spending in recent years has proven we never needed it in the first place.”